April 19, 2024
NBA Faces Lawsuit for Promoting Defunct Crypto Lender Voyager Digital
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NBA Faces Lawsuit for Promoting Defunct Crypto Lender Voyager Digital

The National Basketball Association (NBA) finds itself embroiled in legal turmoil as it confronts a proposed class-action lawsuit stemming from its marketing partnership with now-defunct crypto lender Voyager Digital. Users of the platform allege substantial losses exceeding $4.2 billion, prompting a legal battle that seeks to hold the NBA accountable for its role in promoting Voyager’s offerings.

The over 100-page lawsuit, filed in a Miami district court on Feb. 6, asserts that the NBA displayed “gross negligence” in approving Voyager’s promotional deal with the Dallas Mavericks. The plaintiffs argue that the NBA was meant to act as the “gatekeeper” in such agreements and failed in its duty to protect consumers’ interests.

https://twitter.com/investvoyager/status/1453416487323152384

“This lawsuit simply seeks to hold the NBA liable,” the class group claims. “The NBA’s widespread promotion of Voyager’s unregistered securities renders it liable for any resulting damages.”

Furthermore, the lawsuit alleges that the NBA knowingly embraced the risks associated with partnering with crypto exchanges like Voyager, Coinbase, and FTX, amid financial challenges exacerbated by the COVID-19 pandemic.

Voyager’s law firm, McCarter & English, also faces scrutiny in the lawsuit. The plaintiffs accuse the firm of providing a misleading “Legal Opinion” that purportedly affirmed Voyager’s token as not being an unregistered security, thus contributing to investor and partner confidence.

The legal action follows previous litigation against Dallas Mavericks’ former owner Mark Cuban, who was sued for promoting Voyager and allegedly misrepresenting its safety—a claim vehemently denied by Cuban.

Voyager’s troubles began when it halted withdrawals in July 2022 and subsequently filed for bankruptcy, citing exposure to the defunct crypto hedge fund Three Arrows Capital (3AC). The fallout from Voyager’s collapse has sparked a wave of lawsuits targeting celebrities, sports figures, and organizations that had partnered with crypto firms, including FTX.

Entities ranging from the Mercedes F1 Team to Major League Baseball, along with notable personalities such as football star Tom Brady, NBA icon Steph Curry, and comedian Larry David, have faced legal action over their association with FTX.

As legal battles intensify and scrutiny mounts, the NBA and its affiliates brace for a protracted legal battle, with the outcome poised to have significant ramifications for the intersection of sports, entertainment, and cryptocurrency marketing.

Image: Wallpapers.com

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